Who is Willing to Let Ethics Guide His Economic Decision-Making? Evidence from Individual Investments in Ethical Funds
Recent economics literature has devoted attention towards motives beyond the typical selfish norm for economic decision-making. Yet, it still remains a puzzle who allows such considerations to govern their behavior. This paper contributes by empirically identifying some features which differentiate individuals who choose to bear the cost of ethically guided economic decision-making from others. Using unique Swedish data on individual pension portfolio choices, we find that education, the choice of an occupation that is committed to taking care of others, actively joining a group working for a common cause, clearly predict the choice of an ethical screen for individual investments.In contrast to previous findings on altruism, income, financial wealth and age do not govern the decision. The results therefore suggest that investing ethically is typically a choice of principles.
|Date of creation:||24 Nov 2005|
|Date of revision:|
|Publication status:||Published as Säve-Söderbergh, Jenny, 'Who is Willing to Let Ethics Guide His Economic Decision-Making? Evidence from Individual Investments in Ethical Funds' in Economics Letters, 2010, pages 270-272.|
|Contact details of provider:|| Postal: |
Phone: (0)8 - 16 32 48
Fax: (0)8 - 15 46 70
Web page: http://www.sofi.su.se/
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Andrei Shleifer, 2004.
"Does Competition Destroy Ethical Behavior?,"
American Economic Review,
American Economic Association, vol. 94(2), pages 414-418, May.
- Harbaugh, William T, 1998. "The Prestige Motive for Making Charitable Transfers," American Economic Review, American Economic Association, vol. 88(2), pages 277-82, May.
- Guiso, Luigi & Jappelli, Tullio & Terlizzese, Daniele, 1996.
"Income Risk, Borrowing Constraints, and Portfolio Choice,"
American Economic Review,
American Economic Association, vol. 86(1), pages 158-72, March.
- Guiso, Luigi & Jappelli, Tullio & Terlizzese, Daniele, 1994. "Income Risk, Borrowing Constraints and Portfolio Choice," CEPR Discussion Papers 888, C.E.P.R. Discussion Papers.
- James Andreoni & Lise Vesterlund, 2001.
"Which Is The Fair Sex? Gender Differences In Altruism,"
The Quarterly Journal of Economics,
MIT Press, vol. 116(1), pages 293-312, February.
- Andreoni,J. & Vesterlund,L., 1998. "Which is the fair sex? : Gender differences in altruism," Working papers 10, Wisconsin Madison - Social Systems.
- Andreoni, James & Vesterlund, Lise, 2001. "Which is the Fair Sex? Gender Differences in Altruism," Staff General Research Papers 1951, Iowa State University, Department of Economics.
- Becker, Gary S, 1974.
"A Theory of Social Interactions,"
Journal of Political Economy,
University of Chicago Press, vol. 82(6), pages 1063-93, Nov.-Dec..
- Engström, Stefan & Westerberg, Anna, 2003. "Which individuals make active investment decisions in the new Swedish pension system?," SSE/EFI Working Paper Series in Economics and Finance 527, Stockholm School of Economics, revised 21 Jul 2003.
- Lewis, Alan & Cullis, John, 1990. "Ethical investments: Preferences and morality," Journal of Behavioral Economics, Elsevier, vol. 19(4), pages 395-411.
- Andreoni, James, 1990. "Impure Altruism and Donations to Public Goods: A Theory of Warm-Glow Giving?," Economic Journal, Royal Economic Society, vol. 100(401), pages 464-77, June.
- Gary E. Bolton & Rami Zwick & Elena Katok, 1998. "Dictator game giving: Rules of fairness versus acts of kindness," International Journal of Game Theory, Springer, vol. 27(2), pages 269-299.
- Richard B. Freeman, 1996.
"Working for Nothing: The Supply of Volunteer Labor,"
NBER Working Papers
5435, National Bureau of Economic Research, Inc.
- Freeman, Richard B, 1997. "Working for Nothing: The Supply of Volunteer Labor," Journal of Labor Economics, University of Chicago Press, vol. 15(1), pages S140-66, January.
- Freeman, Richard Barry, 1997. "Working for Nothing: The Supply of Volunteer Labor," Scholarly Articles 4632239, Harvard University Department of Economics.
- Laitner, John & Juster, F Thomas, 1996.
"New Evidence on Altruism: A Study of TIAA-CREF Retirees,"
American Economic Review,
American Economic Association, vol. 86(4), pages 893-908, September.
- John Laitner & F. Thomas Juster, 1993. "New evidence on altruism: a study of TIAA-CREF retirees," Discussion Paper / Institute for Empirical Macroeconomics 86, Federal Reserve Bank of Minneapolis.
- Alicia H. Munnell & Annika Sunden, . "Investment Practices of State and Local Pension Funds: Implications for Social Security Reform," Pension Research Council Working Papers 99-9, Wharton School Pension Research Council, University of Pennsylvania.
- Fischbacher, Urs & Gachter, Simon & Fehr, Ernst, 2001.
"Are people conditionally cooperative? Evidence from a public goods experiment,"
Elsevier, vol. 71(3), pages 397-404, June.
- Urs Fischbacher & Simon Gaechter & Ernst Fehr, . "Are People Conditionally Cooperative? Evidence from a Public Goods Experiment," IEW - Working Papers 016, Institute for Empirical Research in Economics - University of Zurich.
- Bolton, Gary E. & Katok, Elena, 1995. "An experimental test for gender differences in beneficent behavior," Economics Letters, Elsevier, vol. 48(3-4), pages 287-292, June.
- Henrik Cronqvist & Richard H. Thaler, 2004. "Design Choices in Privatized Social-Security Systems: Learning from the Swedish Experience," American Economic Review, American Economic Association, vol. 94(2), pages 424-428, May.
- Falk, Armin, 2004.
"Charitable Giving as a Gift Exchange: Evidence From a Field Experiment,"
CEPR Discussion Papers
4189, C.E.P.R. Discussion Papers.
- Armin Falk, 2004. "Charitable giving as a gift exchange: Evidence from a field experiment," Natural Field Experiments 00238, The Field Experiments Website.
- Armin Falk, . "Charitable Giving as a Gift Exchange - Evidence from a Field Experiment," IEW - Working Papers 168, Institute for Empirical Research in Economics - University of Zurich.
- Falk, Armin, 2004. "Charitable Giving as a Gift Exchange: Evidence from a Field Experiment," IZA Discussion Papers 1148, Institute for the Study of Labor (IZA).
- Plantinga, Auke & Scholtens, Bert, 2001. "Socially responsible investing and management style of mutual funds in the euronext stock markets," Research Report 01E17, University of Groningen, Research Institute SOM (Systems, Organisations and Management).
- Leslie Moscow McGranahan, 2000. "Charity and the Bequest Motive: Evidence from Seventeenth-Century Wills," Journal of Political Economy, University of Chicago Press, vol. 108(6), pages 1270-1291, December.
- Engstr M, Stefan & Westerberg, Anna, 2003. "Which individuals make active investment decisions in the new Swedish pension system?," Journal of Pension Economics and Finance, Cambridge University Press, vol. 2(03), pages 225-245, November.
- Armin Falk, 2004. "Charitable Giving as a Gift Exchange – Evidence from a Field Experiment (new title: Gift-Exchange in the Field)," CESifo Working Paper Series 1218, CESifo Group Munich.
- Schokkaert, Erik, 2006. "The Empirical Analysis of Transfer Motives," Handbook on the Economics of Giving, Reciprocity and Altruism, Elsevier.
- Dufwenberg, Martin & Muren, Astri, 2002. "Discrimination by Gender and Social Distance," Research Papers in Economics 2002:2, Stockholm University, Department of Economics.
- Eckel, Catherine C. & Grossman, Philip J., 2008. "Differences in the Economic Decisions of Men and Women: Experimental Evidence," Handbook of Experimental Economics Results, Elsevier.
- Auten, Gerald & Joulfaian, David, 1996. "Charitable contributions and intergenerational transfers," Journal of Public Economics, Elsevier, vol. 59(1), pages 55-68, January.
When requesting a correction, please mention this item's handle: RePEc:hhs:sofiwp:2005_007. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Lena Lindahl)
If references are entirely missing, you can add them using this form.